State tax implications of employing telecommuters.

Although telecommuting can lower the cost of office space, reduce employees out-of-pocket expenses and decrease commuting stress, it can create significant state tax implications for both telecommuters and their employers. Despite this drawback, telecommuting and virtual offices are all the rage. Employees are taking advantage of telecommuting to save time and money. Business owners and top executives are telecommuting from their principal residence or second home, or on the road. Even consulting groups work from home when not traveling for work. More importantly, telecommuting appears to be here to stay--according to the International Telework Association & Council, approximately